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Nearshoring vs Offshoring – What Is The Difference? Boost your Business!

Limits for business are disappearing, deficiencies in the local labor market can be compensated for by reaching for specialists. Who are available in other parts of the country and even the world. Learn the key differences between nearshoring and offshoring!

Should you choose offshoring or nearshoring?

Below you will find out what are the differences, what to choose and what factors to pay attention to!

What is Nearshoring & Offshoring and Outsourcing?

Nearshoring is the idea of ​​outsourcing processes to less distant regions – both geographically and – and perhaps even above all – culturally. The factor determining the difference of nearshoring from the rest are people who are similar to us.

The opposite is the offshoring model, that is outsourcing to the far world’s corners.

So, as you can see, nearshoring and offshoring are a kind of specific type of outsourcing. It is not a branch, but rather a targeted way for companies willing to cooperate with people with a similar work ethic and culture.

If you already know whether you need nearshoring or offshoring, it would be worth considering the choice of the right software house and its size.

The power of outsourcing IT tasks

If you still do not use the skills of programmers from neighboring countries, then your company is in a decided minority. Because according to IT Outsourcing Statistics more than half of IT companies delegate their needs to neighboring countries.

According to a report, almost 90% of all customers are satisfied with this solution. This way of delegating projects is so much welcomed because your company does not have to take on the employment of another programmer.

Certainly, having an in-house programmers team certainly allows direct contact, internal control, and connection building. The employee who feels connected with the workplace, co-workers is more involved.

But in fact, remote work also makes it easier, sometimes you have more contact with a colleague you talk to via Slack than with a colleague who works in a distant room. Point of view depends on the point of sitting. Literally.

Everything is fine, but how do you find the right programmers?

Software Engineers - development team

Creating solutions remotely

Does the ever-increasing requirement for remote work take away control to hire programmers to work in a physical office?

Yes, it takes control but it’s nothing bad. Such conditions dictate today’s capitalist market. Using well-educated programmers who have extensive experience will create a large amount of savings in your company. In addition, you will not have to manage multiple processes, which will save you time. You will be able to devote this time to other things.

You do not have to think about the costs of equipment, its operation, software, employee training, office space.

For developers, working for foreign companies on huge projects is a great opportunity for development. Not only the development of programming skills, but also linguistic skills or even making new friends.

The similarity of cultures in creating a business

Returning strictly to nearshoring, it is worth emphasizing the fact that the same cultural foundations play a huge role here. The reason why this fact is so important is trivial. Matching workflow and organizational and legal culture is key.

The implementation of new standards for outsourcing of work requires the cooperation of two parties. At the beginning, it can consume a lot of time.

In order to emphasize the sense of sending a project to nearby countries, it is worth quoting a specific country. Poland, country which is very close to Western culture.

It is a country in which a huge number of people, in particular developers, speaks English. In addition, Poland has a very good level of technical universities.

For example, Poland adheres to the laws, provisions and norms of the European Union. So the Polish market is therefore safer in terms of data protection. For comparison, Asian countries do not have such restrictive standards regarding information security provided by foreign investor.

In turn, according to the report “A.T. Kearney Global Services Location IndexTM“. Poland ranks first among the most attractive locations in Europe for the outsourcing of IT services.  

If you feel confident about the choice of country, maybe you should think about how to choose the right software house?

Wraping-up nearshoring and offshoring together

Outsourcing your project or just individual tasks in the entire project creates savings and makes you have more time.

That’s obvious!

However, as you can see in long-term cooperation, cultural differences, the way you work or the approach to creating source code can decide on the quality of such cooperation.

If you still have doubts about the legitimacy of the thesis that nearshoring is a good solution. Write us a message!

We’re happy to discuss!

cto - Chris Gibas

Free 30-minute consultation with our CTO

Chris Gibas - our CTO will be happy to discuss your project! Let's talk!

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